This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc..

PayPal Warning

While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day. The main subject of the majority of these horror stories is the following:

Your Paypal account can be frozen at any time, without advance notice, leaving you without your money for months (if not forever), and there isn't much you can do about it.If you would like to submit your own PayPal horror story, we would be more than happy to post it for everyone to read, providing that it is truthful and void of inappropriate language. Please feel free to submit your story by clicking Here

How Does PayPal Make Money With My Money?

According to the San Francisco Chronicle, there are approx. 100,000 complaints outstanding at PayPal (Are any of these yours?). In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts. So what happens to the millions of dollars tied up in frozen accounts and disputes? Well, here is a clip from the San Francisco Chronicle that basically sums it up:

U.S. District Judge Jeremy Fogel of San Jose refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide. A common allegation is that the company brushes off or stalls customer grievances for months and meanwhile freezes the customer's account and pockets the interest (So that's how they make their money!). No wonder they freeze so many accounts!

Product Misrepresentation

By Michelle

I foolishly purchased a “hand made in the USA custom made show saddle” on ebay. The seller claimed it was hand made in USA, hand engraved leather, hand engraved silver, high quality. The shipping dates were a little confusing, and I paniced when she wanted an additional week for shipping, (I had already waited 12 days) so I contacted paypal. They withdrew her money until she produced a tracking # with UPS. At the time she provided me that info, I released the funds. I thought the SHIPPING dispute was ended. When the saddle arrived it fell out of the box with a “MEXICO” tag on it. It is obviously a crudly made imported saddle. Even the box tells me it is not hand made in the USA.

The seller refused to refund my money, paypal sayse the claim has been closed and cannot be reopened even though she scammed me, and ebay won’t help me because I paid with paypal. I am out over $900 and no one seems to care. Seeems pretty incredible that someone can obviously misrepresent a product so clearly, and I, as a buyer, am left with no recourse. I will not be buying on ebay again and certainly will warn people who do to be VERY VERY careful.

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